PHILADELPHIA CREAM – (COMMERCIAL THREAD) – Independence Realty Trust, Inc. (NYSE: IRT) (“IRT”) today announced that its operating partnership, Independence Realty Operating Partnership, LP, has entered into an amended and terminated unsecured credit facility. day. New facility increases borrowing capacity under IRT’s existing revolving credit facility from $ 350 million to $ 500 million and extends the maturity date of the revolving credit facility from May 2023 to January 2026. The proceeds of the extended revolving credit facility will be used for general corporate purposes. .
The Amended and Restated Unsecured Credit Facility also consolidates IRT’s three outstanding term loans for a total amount of $ 500 million. The financial conditions of the three term loans have not been changed and their respective maturity dates remain as follows: (1) May 2026 for the $ 200 million term loan initially contracted in 2021, (2) January 2024 for the $ 200 million term loan initially contracted in 2018 and (3) November 2024 for the $ 100 million term loan initially made in 2017.
Borrowings under the revolving credit facility continue to bear interest at LIBOR plus 1.25% to 2.00% based on IRT’s consolidated leverage ratio. At closing, the interest rate on the revolving credit facility is LIBOR plus 1.25% and on term loans outstanding is LIBOR plus 1.20%, each representing a reduction of approximately 10 points. base against existing interest rates.
“This expanded and consolidated unsecured credit facility continues to strengthen our capital structure. We are now well equipped to support our growing portfolio of approximately 38,000 units in the high growth Sunbelt region of the United States, which includes the early closing of our merger with Steadfast Apartment REIT later this week, ”said James J. Sebra, Chief Financial Officer of IRT. Officer. “With this credit facility, we have extended our maturities and increased our financial flexibility.
The National KeyBank Association is the administrative agent for the unsecured credit facility. KeyBanc Capital Markets, Inc. and Citibank, NA are Associate Bookkeepers under the Unsecured Credit Facility and KeyBanc Capital Markets, Inc., Citibank, NA and The Huntington National Bank are Joint Principal Arrangers. Facility co-syndication agents include Citibank, NA and The Huntington National Bank, and co-documentation agents are Bank of America, NA, Barclays Bank PLC, BMO Harris Bank NA, Capital One, National Association, Citizens Bank, NA, PNC Bank, National Association, Regions Bank, Royal Bank of Canada and Truist Bank.
About Independence Realty Trust, Inc.
Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multi-family apartment properties in non-portal US markets, including Atlanta, Dallas, Louisville, Memphis, Raleigh, and Tampa. IRT’s investment strategy is focused on expanding into key commodity-rich submarkets that offer good school districts, high-quality retail and major employment centers. IRT aims to provide shareholders with attractive risk-adjusted returns through diligent portfolio management, strong operational performance and a constant return on capital through distributions and capital appreciation. More information can be found on the IRT website at www.irtliving.com.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “will fly”, “strategy”, “expect”, “research”, “believe”, “possible” or other similar words. . These forward-looking statements include, without limitation, our expectations regarding capital allocations and growth opportunities. Since these statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by these forward-looking statements. These forward-looking statements are based on the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. In addition, these forward-looking statements are subject to assumptions regarding future business strategies and decisions which are subject to change. Risks and uncertainties that could cause our actual results to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: risks related to the impact of COVID-19 and other epidemics potential futures of infectious diseases on our condition, operating results, cash flow and performance and that of our residents, as well as on the economy and the real estate and financial markets; changes in market demand for rental apartments and price pressures, including from competitors, which could limit our ability to rent units or increase rents or which could result in lower occupancy levels and rents; uncertainty and volatility in capital and credit markets, including changes that reduce the availability and increase the costs of capital; the inability of tenants to meet their rents and other rental obligations and write-offs in excess of our allowance for bad debt; legislative restrictions that may delay or limit the collection of overdue rents; the risks endemic to real estate and to the real estate sector in general; depreciation charges; the effects of natural and other disasters; delays in completion and cost overruns incurred in connection with our value-added initiatives and the inability to meet rent increases and expected occupancy levels as a result of these initiatives; the structure, timing and completion of our pending merger transaction with Steadfast Apartment REIT, Inc. (“STAR”) and any effects of pending or completion of the merger, including inability to realize the cost savings, synergies and other benefits expected from the merger; the ability to successfully integrate IRT and STAR activities; the occurrence of any event, change or other circumstance that may result in the termination of the merger agreement; the risk that the parties will not be able to meet the conditions of the merger on time or not at all; risks associated with the disruption of the management time of current business operations due to the current merger transaction; the risk that the merger could adversely affect our ability to retain and hire key personnel and to maintain relationships with our customers and suppliers, and on our results of operations and our business in general; unanticipated costs of meeting REIT qualifications; unexpected changes in our intention or ability to repay certain debts before maturity; failure to sell certain assets on time or at expected price levels; costs and disruption resulting from a cybersecurity incident or other technological disruption; and fluctuations in stock prices. Please refer to the documents we have filed with the SEC, including in particular the “Risk Factors” sections of our Form 10-K for the year ended December 31, 2020, our quarterly reports subsequently filed on the Form 10-Q and our other documents filed with the SEC, which identify other factors that could cause actual results to differ from those contained in forward-looking statements. We assume no obligation to update these forward-looking statements to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unforeseen events, except as required by law.